Human Resource Management Chapter Ten Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO 1 Discuss how companies use human resources management to gain competitive advantage. LO 2 Give reasons companies recruit both internally and externally for new hires. LO 3 Identify various methods for selecting new employees. LO 4 Evaluate the importance of spending on training and development. 10-2 Learning Objectives (cont.) LO 5 Explain alternatives for who appraises an employee’s performance. LO 6 Describe the fundamental aspects of a reward system. LO 7 Summarize how unions and labor laws influence human resources management. 10-3 Human Resource Management Human resources management (HRM) Formal systems for the management of people within an organization. 10-4 Strategic Human Resources Management Creates value Is rare Is difficult to imitate Is organized 10-5 Strategic Human Resources Management Human capital The knowledge, skills, and abilities of employees that have economic value. 10-6 The HR Planning Process Demand forecasts determining how many and what type of people are needed. Supply of labor how many and what types of employees the organization actually will have. 10-7 An Overview of the HR Planning Process Figure 10.1 10-8 Question What tool is used for determining what is done on a given job and what should be done on that job? A. Job description B. Job specification C. Job analysis D. Occupation breakdown 10-9 The HR Planning Process Job analysis A tool for determining what is done on a given job and what should be done on that job. 10-10 Staffing the Organization Recruitment The development of a pool of applicants for jobs in an organization Internal, external Selection Choosing from among qualified applicants to hire into an organization 10-11 Selection Applications and Résumés Interviews Reference Checks Background Checks Personality Tests Drug Testing Cognitive Ability Tests Performance Tests Integrity Tests 10-12 Interviews Structured interview Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers. 10-13 Screening Tools Used Most Often Figure 10.2 10-14 Performance Tests Assessment center A managerial performance test in which candidates participate in a variety of exercises and situations. 10-15 Reliability and Validity Reliability The consistency of test scores over time and across alternative measurements. Validity The degree to which a selection test predicts or correlates with job performance Criterion, content 10-16 Workforce Reductions Outplacement The process of helping people who have been dismissed from the company regain employment elsewhere. 10-17 Termination Employment-at-will The legal concept that an employee may be terminated for any reason. 10-18 Advice on Termination Table 10.1 10-19 Legal Issues and Equal Employment Opportunity Adverse impact When a seemingly neutral employment practice has a disproportionately negative effect on a protected group. 10-20 U.S. Equal Employment Laws Table 10.2 10-21 U.S. Equal Employment Laws (cont.) Table 10.2 10-22 Training and Development Training Teaching lower-level employees how to perform their present jobs. Development Helping managers and professional employees learn the broad skills needed for their present and future jobs. 10-23 Training and Development Needs assessment An analysis identifying the jobs, people, and departments for which training is necessary. 10-24 Training Delivery Methods: Percent of Total Hours Figure 10.4 10-25 Types of Training Orientation training Training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like Team training Training that provides employees with the skills and perspectives they need to collaborate with others. 10-26 Types of Training Diversity training Programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce. 10-27 Performance Appraisal Performance appraisal (PA) Assessment of an employee’s job performance. 10-28 Types of Appraisals Trait Behavior Results 10-29 Performance Appraisal Management by objectives (MBO) A process in which objectives set by a subordinate and a supervisor must be reached within a given time period. 10-30 Question ___________ is the process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance. A. 360-degree appraisal B. Peer appraisal C. Content appraisal D. Equity appraisal 10-31 Performance Appraisal 360-degree appraisal Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance 10-32 Giving Feedback 1. 2. 3. 4. 5. Summarize the employee’s performance, and be specific. Explain why the employee’s work is important to the organization. Thank the employee for doing the job. Raise any relevant issues, such as areas for improvement. Express confidence in the employee’s future good performance. 10-33 Factors Affecting the Wage Mix Figure 10.6 10-34 Pay Structure Figure 10.7 10-35 Employee Benefits Cafeteria benefit Flexible benefit program programs An employee benefit Benefit programs in program in which employees choose from a menu of options to create a benefit package tailored to their needs. which employees are given credits to spend on benefits that fit their unique needs. 10-36 Labor Relations Labor relations The system of relations between workers and management. 10-37 Collective Bargaining Union shop An organization with a union and a union security clause specifying that workers must join the union after a set period of time. Right-to-work Legislation that allows employees to work without having to join a union. 10-38 Determinants of Union Voting Behavior Figure 10.8 10-39 Video: SAS Why is SAS rated as a top company to work for by Forbes? How does SAS attract and keep top talent? 10-40